Business planning tasks
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Topic Goals and objectives of business planning
Klimovich Dmitry Valerievich
Goals and objectives of business planning
The main purpose of business planning is to plan activities for the near and distant periods in accordance with the needs of the market and the possibilities of obtaining the necessary resources.
Business planning helps an entrepreneur to solve the following main tasks:
- to determine the specific directions of the firm's activities, target markets and the place of the firm in these markets; - to formulate the long-term and short-term goals of the firm, the strategy and tactics for achieving them. Identify persons responsible for implementing the strategy;
- select the composition and determine the indicators of goods and services that will be offered by the firm to consumers. Estimate production and trading costs for their creation and implementation;
- will reveal the compliance of the existing personnel of the company, the conditions for motivating their work with the requirements for achieving the set goals;
- determine the composition of the company's marketing activities for market research, advertising, sales promotion, pricing, sales channels, etc.;
Starting a business, it is not enough to calculate the cost of equipment, raw materials, prices, production costs. In the real conditions of a market economy, an entrepreneur will face a number of objective and subjective problems: fierce competition, inflation, customer traffic, etc. In order to anticipate the upcoming challenges of the market, to make competent decisions in non-standard situations, business planning is used. What is the purpose of a business plan, its tasks and rules for drawing up - learn more in this material.
The value of the business plan for the organization
A business plan is a document that outlines a company's development program with a deep justification of ways to make a profit, detailed information about material and technical and human resources, listing the range of products or services, sales markets, marketing activities , finance, perspective analysis, etc. It is for internal use only and is a trade secret.
With the help of professional planning, you can anticipate emerging problems, calculate risks, find effective measures to prevent them and progressive development of production.
Internal and external goals
The main goals of business planning can be roughly divided into internal and external. Internal goals determine the current and future directions of enterprise development in accordance with the needs of the market, are an effective tool for the economic management of an enterprise or company.
External - allow potential investors to see the prospect of investing in a project, the profitability of cooperation.
Planning
What goals should be attributed to business planning procedures? First of all:
- substantiation of the prospects of the company's activities, the payback of the project;
- the formulation of the strategy and tactics of development, ways to achieve the set goals, the development of a specific plan - a schedule of actions for the next period and further perspective in each direction;
- placement of personnel, the place of each in solving problems, motivation for effective work;
- determination of the list of goods and services, calculation of production indicators in the short and long term for all types of activities;
- costs of their production, cost;
- marketing, advertising, market research of the region, measures to stimulate sales, pricing, etc.;
- evaluation financial condition, measures to attract investment;
- anticipated risks, possible ways to prevent them.
Strategy
Business Plan Planning Goals
A good business plan will generate confidence and interest in the company and easily attract an investor and debt capital. This document will become a complete script for further management and control. Thus, business plan planning has several goals.
Ensuring a Successful Start
Every business idea needs to be evaluated in terms of success, profitability and relevance. For this, a detailed monitoring of the market is carried out and a step-by-step plan is drawn up. It often happens that an idea seems promising, but after analysis it becomes clear that it is uncompetitive and will not bring profit. Accurate calculations are indispensable. This will allow you to avoid unprofitable adventures and be sure that the company does not go bankrupt.
Attraction of investments
Capital is required to bring an idea to life. Justification of the economic efficiency of the project demonstrates to the investor the profitability of the idea. Only detailed calculations, confirmed by real figures, will convince a potential partner of the prospects of cooperation with you.
Getting a loan
The second option for raising borrowed capital is a bank loan. You will not get it if you do not have a documentary justification for the profitability of the business and financial calculations. The decision on lending is made only after studying the sources of loan repayment and cash flows. Financiers will definitely pay attention to the analysis of possible risks and the calculated payback period.
Business Idea
At the heart of any plan is a business idea - a general idea of what to do. A business idea is only the very beginning of the path to a business plan, but the success of a business depends very much on the correct choice of a business idea. Only a very experienced and competent businessman can make a profitable business based on almost any business idea. It is very important for a beginner to choose a successful business idea.
Successful, first of all, it is necessary to recognize a business idea that finds an unoccupied niche in the market, is original. It must meet the following requirements: - the buyer must need your product or service, if the buyer does not need the product, there is no business; - buyers must be willing to pay your price for the product; - it is necessary to reckon with the fact that people do not change their habits drastically, therefore a successful business idea should not be “unnecessarily” original.
Types of business plans
Goals and objectives of business planning
With the help of business project planning (BPP), you can define the goals and objectives of the company for the near future.
BPP may have several more goals:
- Social. If the task is to raise the status of a businessman.
- Special tasks and goals: develop connections, enter associations, etc.
To successfully implement a project and get money, you need a certain database, the source of which is a business plan.
During the collection of information and the preparatory stage, you can solve the following tasks:
- Summarize background information about the project to be implemented.
- Perform technical calculations.
- Analyze the current state of the market in relation to a specific direction.
- Assess the prospect for profitability.
The task of the BPP is to describe as fully as possible the prospects for the development of the enterprise, that is, to give an answer to the question of whether it is rational to invest in its development
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- Establish in which direction the company will develop, which markets it will target, and what place it takes.
- Formulate goals that must be achieved in the shortest possible time, as well as goals for the long term, determine with the help of which strategies and tactics they will be achieved. Assign responsibility for the implementation of certain strategies and tactics.
- Select the composition and determine the parameters of the goods that will be offered to buyers, assess the production and trade costs for their creation and sale.
- Determine if the company's specialists meet the requirements specified in the business plan.
- Define a list of marketing activities, the purpose of which will be to study markets, advertising campaigns, sales promotion, pricing, distribution channels, etc.
- Assess the financial position of the company, determine what material and financial resources are available.
- Identify obstacles that may negatively affect the practical implementation of the planned plan.
Business planning is so valuable because it helps you:
- Assess whether the project is viable and competitive in the market.
- Find out how to develop the project.
- Receive funds for the development of the project from investors and lenders.
What are business plans?
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Goals and objectives of business planning
In a market environment, it is unrealistic to achieve stable business success if you do not plan for its effective development, do not constantly accumulate information about your own state and prospects, the state of target markets, the position of competitors in them, and so on. It is necessary not only to accurately represent your needs for the future in material, labor, intellectual, financial resources, but also to provide for the sources of their receipt, to be able to identify the efficiency of resource use in the process of the enterprise.
Previously, when there was state management, planning was purely centralized, the share of enterprises was only to fulfill tasks and plans received from above.
Today, most commercial firms do not have officially adopted plans, and there is no necessary planning mechanism: various kinds of norms and standards. Planning is replaced by all sorts of decisions of the owner about certain areas of economic activity, which are designed for the next period of time and do not provide for an orientation towards the future. This is due to the rapid change in the market situation in the country and in the economic conditions, the small number of management staff at small enterprises, the authority of managers of large enterprises with solid experience in economic management. Although the practice often confuses such leaders.
But making all sorts of current decisions, even the most timely ones, does not replace planning, which, in comparison with decision making, is a management activity of a much higher order. That is why this topic is relevant at the present time, and the problem of developing business plans is very acute at enterprises.
Thus, business planning is an objective assessment of the own entrepreneurial activity of an enterprise, a firm and at the same time a necessary tool for design and investment decisions in accordance with the needs of the market and the current economic situation.
1. spruce and tasks of business planning
In a market economy, a business plan is a working tool used in all areas of entrepreneurship. This plan characterizes the process of functioning of the company, shows how its leaders are going to achieve the fulfillment of the assigned tasks, first of all - to increase the profitability of the company. A well-developed plan helps the company to grow, gain new positions in the market where it operates, draw up deeper long-term plans for its development, concepts for the production of new goods and services, and choose rational ways to implement them.
The business plan is, as a rule, systematically updated, changes are made to it related both to changes occurring within the company and to changes in the market where the company operates and in the economy as a whole. Thus, a business plan helps an entrepreneur assess the progress of his business based on intra-firm and macroeconomic analysis and monitor current operations.
